Panel gives nod to revamp of gas allocation policy

A Committee of Secretaries (CoS) has approved the proposed revamp of the gas allocation policy, tweaking the sectoral priority in favour of city gas distribution (CGD) projects and strategic sectors such as atomic energy for allocation of the fuel, sources said.

The move is aimed at promoting clean energy, cutting subsidies and preparing for the expected rise in gas demand from CGD projects selling compressed natural gas (CNG) to automobiles and piped natural gas (PNG) to households. Currently, CGD projects are ranked fourth in the priority list of natural gas consumers behind urea-manufacturing fertiliser plants (top-priority), followed by liquefied petroleum gas (LPG) and power projects.